Mortgage BPO State of Market Report 2015 – Curve of Time to Meet Mortgage Again?

1 May 2015
by Amardeep Modi, Rajesh Ranjan

$2,999.00

Introduction

Mortgage BPO stands out as the largest submarket within the Banking BPO space. As regulatory bodies continue to increase their oversight on mortgage activities of the banks, role of BPO services has been increasing in the mortgage landscape. This, coupled with newer entrants in the space (for instance, small banks), is also causing a spike in the demand for mortgage BPO services. Buyers are now looking towards service providers to deliver more than just cost savings. Tools to ensure compliance and prevent banks from faltering in the future are increasingly gaining prominence. However, service providers still need to prove their capabilities to buyers (especially first-time buyers) before widespread adoption can be witnessed. With progressively changing landscape, service providers will be required to make the right set of investments to stay competitive. At the same time, buyers need to identify the providers who understand their unique business challenges and can help mitigate them.

Scope and Methodology

In this research, we analyze the global mortgage BPO service provider landscape. We focus on:

  • Market size and buyer adoption
  • Mortgage BPO solution characteristics
  • Mortgage BPO service provider landscape

Content

This report assists key stakeholders (buyers, service providers, and technology providers) in understanding the changing dynamics of the mortgage BPO market and helps them identify the recent trends and future outlook. In this backdrop, the report provides comprehensive coverage of the global mortgage BPO market including detailed analysis of market size & growth, buyer adoption trends, mortgage BPO solution characteristics, and service provider landscape. Some of the findings in this report are:

  • The mortgage BPO market reached the US$1.3 billion mark in 2014, growing at a CAGR of 11%-12% from 2012 to 2014
  • Rebounding mortgage rates and increased costs of originations in the United States, had a severe impact on the BPO activity emerging from the banks
  • Originations accounted for a higher share of the market in terms of revenue, however, servicing is growing at a faster pace
  • Regulatory concerns, among other factors, prompted financial institutions to increase their outsourcing leverage
  • Factors, such as emerging new entrants, expanded regulations, and adoption of analytics and automation tools, are likely to impact the future of the mortgage BPO market
  • Buyers exhibit maturity by adopting more complex pricing mechanisms
  • Among the service providers covered by Everest Group, Accenture, IBM, TCS, and Wipro continue to dominate the mortgage BPO market
 

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